Halister News

(Bloomberg) -- BOJ’s “nominal yield curve targeting framework” hasn’t prevented JGB yields from rising, and “we believe that there is somewhat more tolerance to allow 10Y yields to rise further,” Credit Suisse strategist Praveen Korapaty says in note.

• If 10Y JGB yield is allowed to rise to 15bp, “this could open the door to a further repricing in global term premia”
• Factors that could limit selloff in USTs include assumption that JGB curve would be “roughly anchored”; if it isn’t, “that dynamic will provide less of a buffer”